Penny stock
Image credit: Investopedia

A penny stock is defined as stocks that are traded for under 5 dollars. Despite their miniscule size, these can actually offer substantial opportunities for growth. If an investor is looking to gain exposure on what it’s like investing into artificial intelligence then penny stocks are an affordable low risk entry point into the field.  

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SoundHound AI

Penny stock

Soundhound was founded in 2005, they offer AI speech and audio technologies that offer  voice recognition, natural language understanding, and conversational AI. Their stock trades at nearly around 2$. 2022 didn’t see much progress and it was nearly flat but the sudden popularity of AI bots like Chat GPT sky rocketed their market value and stocks went up by 200% which shows how soundhound capitalizes off of the popularity of AI technology and why this is a good penny stock to invest in. There are several factors that make it as great as it is, these include:-

  1. Disrupting customer support through AI-powered chatbots
  2. Partnerships with big companies like Hyundai, snapchat, master card 

These factors make it a great penny stock for investors.

Innodata Inc, AI penny stock

Innodata inc enjoyed in 2022, when their stock value rose by 200 to 300 %, Market cap of Innodata now exceeds 300 million dollars making this penny stock worth checking out. What really makes them stand out amongst others is their focus on generative AI. AI that can generate new content except for relying on old ones and pattern recognition. Some factors that make it a worthy penny stock are:-

  • Delivering tailored enterprise solutions to unlock generative AI’s capabilities across different media forms such as pics, videos, audio etc.
  • Partnering with top tech companies including Apple, Amazon, and Sony
  •  Stock exhibits consistent technical uptrend with support levels, unlike other volatile AI stocks.

  • Strong financial growth indicators including rising revenues, margins, and profits.

Other businesses has started to adopt their idea of generative AI but innodata seems to be in the forefront of it all. This makes it a penny stock worth investing in.

Applied Digital Corp

penny stock
Image credit: Applied Digital

Another AI penny stock in the forefront of the market is applied digital. They build and operate data centers for high performance computers. Price of their shares has doubled in the recent months. Applied digital is a technology company that specializes in digital solutions. It focuses on applications and faces issues faced in the real world across industries. From healthcare to finance and beyond, They’ve offered many software solutions but their expertise lies in improving operative efficiency. streamlining processes and driving business growth through digital transformation. Some factors that make it a worthy penny stock include:-

  1. AI model development requires immense computing power, driving demand for robust data center infrastructure and solutions.
  2. Applied Digital posted  1,000%+ in the last quarter.
  3. They specialize in computer centers specifically for AI.
  4. Big tech and Fortune 500 companies need scalable infrastructure to support cloud-based AI, playing to Applied Digital’s strengths.

Conclusion

With AI popping off everywhere in 2024, These three companies offer the best opportunity for investors to see whether it is worth investing into or not. You should still do further research before coming to a decision.

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